Regulatory Alerts2026-04-28 | 13810Setting a Cap on the Merchant Discount Rate (MDR)
The Central Bank of Lebanon issued Basic Decision No. 13810 to cap the Merchant Discount Rate (MDR) at a maximum of 1.25% per transaction, including an interchange fee not exceeding 0.9%, for locally issued bank cards across five vital sectors: fuel stations, supermarkets and mini-markets, hospitals, pharmacies, and large bakeries. The decision prohibits banks from charging these sectors any additional direct or indirect fees and bans merchants from imposing extra consumer surcharges at electronic point-of-sale terminals. This regulatory framework, effective June 15, 2026, is supervised by the Banks Supervision Committee and aims to strengthen financial transparency, curb cash dependency, enhance tax compliance, and promote electronic payment adoption.